ZuoTi.Pro
Question

Suppose the firms in a five-firm industry have market shares of 30, 30, 20, 10, and...

Suppose the firms in a five-firm industry have market shares of 30, 30, 20, 10, and 10 percent, respectively. The Herfindahl index for the industry is

Multiple Choice

A) 1,900.

B) 2,400.

C) 90.

D) 10,000.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

HHI INDEX = SUM OF SQUARE OF MARKET SHARE=900+900+400+100+100= 2400.

Hence correct answer is Option B.

HHI index measures competitive structure of the industry.

PLEASE UPVOTE INCASE YOU LIKED THE ANSWER WILL BE ENCOURAGING FOR US THANKYOU VERY MUCH

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose the firms in a five-firm industry have market shares of 30, 30, 20, 10, and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Suppose four firms have market shares of 30%, 30%, 20% and 20%. What is the Herfindahl-Hirschman...

    Suppose four firms have market shares of 30%, 30%, 20% and 20%. What is the Herfindahl-Hirschman Index for this market? 10000 2600 100 25 Question 18 What is the Herfindahl–Hirschman Index for a market with 100 firms, each with 1% market share? 10000 1000 100 1

  • 3. The top four firms in Industry A have market shares of 30, 25, 10, and...

    3. The top four firms in Industry A have market shares of 30, 25, 10, and 5 percent respectively. The top four firms in industry B have market shares of 15, 12, 8 , and 4 percent respectively. Calculate the four-firm concentration ratios for the two industries. Which industry is more concentrated?

  • Find the Herfindahl Index and the Four-Firm Concentration Ratio for an industry with: Five firms—one with...

    Find the Herfindahl Index and the Four-Firm Concentration Ratio for an industry with: Five firms—one with 60 percent of the market and others with 25, 10, 3, and 2 percent of the market, respectively. One firm with 60 percent of the market and four others with 10 percent each. Ten firms with 8 percent of the market each and four other firms have 5 each.

  • An industry has five firms. Each of the four firms in the industry has a market...

    An industry has five firms. Each of the four firms in the industry has a market share of 22 percent, and the last firm has a market share of 12 percent. Calculate the Herfindahl index and four-firm concentration ratio for the industry.

  • What would the Herfindahl-Hirschman Index equal for an industry consisting of six firms with market shares...

    What would the Herfindahl-Hirschman Index equal for an industry consisting of six firms with market shares of 40%, 30%, 20%, 5%, 3%, and 2%? a. 0.95 b. 10,000 c. 2,938 d. 2.934

  • An industry has 10 firms, each with a market share of 10 percent. There is no...

    An industry has 10 firms, each with a market share of 10 percent. There is no foreign competition, entry into the industry is difficult, and no firm is on the verge of bankruptcy. a. If 5 of the firms in the industry seek to merge, the Herfindahl index would change from 2,200 to 2,200. 600 to 1,000. 600 to 1,600. 1,000 to 2,200. b. This merger would be challenged, because of the value of the new Herfindahl index only. not...

  • 1. An industry having a four-firm concentration ratio of 85 percent: a. is an oligopoly. b....

    1. An industry having a four-firm concentration ratio of 85 percent: a. is an oligopoly. b. is monopolistically competitive. c. is a monopoly. d. approximates perfect competition. 2. Industry Y is dominated by four large firms that hold market shares of 15, 20, 30 and, 35. If all the firms in industry Y merged into a single firm, the Herfindahl Index would become: a. 100 b. 10,000 c. 100,000 d. 1,000

  • Question 60 5 pts If there are five firms in an industry with equal market shares,...

    Question 60 5 pts If there are five firms in an industry with equal market shares, then the Herfindahl-Hirschman Index equals Question 30 5 pts If firms in a monopolistically competitive industry are incurring short-run economic losses, then in the long run new forms producing the exact same product will enter the industry and this entry will continue until economic profits are eliminated. new firms producing close substitutes will enter the industry and this entry will continue until economic profits...

  • Industry A has four firms. The largest firm in Industry A has more than 90 percent...

    Industry A has four firms. The largest firm in Industry A has more than 90 percent of the market share. Industry B also has four firms, but each of those four firms in Industry B has 25 percent of the market share. The Herfindahl-Hirschman index will be A. larger for Industry B than Industry A, but the four-firm concentration will be the same. В. tte same for both industries, but the four-firm concentration will be larger for industry Y than Industry A C....

  • The bicycle industry consists of seven firms. Firms 1, 2, 3, 4 each has 10% market...

    The bicycle industry consists of seven firms. Firms 1, 2, 3, 4 each has 10% market share, and firms 5,6,7 each has 20% market share. Using the concentration measures, answer the following questions: (i) Calculate 4-firm concentration ratio for this industry. (ii) Calculate the Herfindahl-Hirschman index (HHI) for this industry. (iii) Now, suppose that firms 1 and 2 merge, so that the new firm will have a market share of 20%. 1) Calculate the post merger I(x) 2) Calculate the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT